Microchip launches industry’s first PCIe Gen 6 switches on 3 nm process

CHANDLER, Ariz. - Microchip Technology (NASDAQ:MCHP), a $32.6 billion semiconductor company, unveiled on Monday its Switchtec Gen 6 PCIe Switches, which the company describes as the industry’s first PCIe Gen 6 switches manufactured using a 3 nanometer process. According to InvestingPro data, the company’s stock is currently trading above its Fair Value, though 13 analysts have recently revised their earnings expectations upward for the upcoming period.

The new switches double the bandwidth of PCIe 5.0 to 64 GT/s (giga transfers per second) per lane and support up to 160 lanes for high-density AI system connectivity. The increased data throughput aims to address bandwidth bottlenecks that have limited performance in artificial intelligence and high-performance computing applications. This strategic move comes as Microchip maintains strong financial health with a current ratio of 2.31, indicating solid liquidity to support its innovation initiatives.

The Switchtec Gen 6 family includes advanced security features such as hardware root of trust and secure boot, utilizing post-quantum safe cryptography compliant with the Commercial National Security Algorithm Suite 2.0.

"By expanding our proven Switchtec product line to PCIe 6.0, we’re enabling this transformation with technology that facilitates direct communication between critical compute resources," said Brian McCarson, corporate vice president of Microchip’s data center solutions business unit, in a press release statement.

The switches feature 20 ports and 10 stacks with each port featuring hot- and surprise-plug controllers. They also support Non-Transparent Bridging to connect and isolate multiple host domains and multicast for one-to-many data distribution.

Microchip is offering the new switches with its ChipLink diagnostic tools and the PM61160-KIT Switchtec Gen 6 PCIe Switch Evaluation Kit. The products are currently available for sampling to qualified customers.

The company’s announcement comes as data center architects increasingly move away from traditional designs toward models where components are organized as pools of shared resources, particularly for AI workloads that require high bandwidth and low latency. With annual revenue of $4.24 billion and net income expected to grow this year, InvestingPro analysis reveals over 10 additional key insights about Microchip’s financial outlook and market position. Get access to the complete Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks, for comprehensive analysis and actionable investment intelligence.

In other recent news, Microchip Technology Inc. has announced the successful interoperability of its ASA Motion Link chipsets with AVIVA Links’ technology, marking a significant achievement for the Automotive SerDes Alliance’s open standard. This development is crucial for advancing scalable, high-speed connectivity in automotive applications. Furthermore, Microchip has introduced its new LAN9645xF and LAN9645xS Gigabit Ethernet Switches, designed to enhance industrial connectivity with various port configurations and advanced networking features. These switches can operate in both unmanaged and managed modes, supporting full Linux Distributed Switch Architecture.

Additionally, Microchip has partnered with Deca Technologies and Silicon Storage Technology to develop a non-volatile memory chiplet solution, combining advanced technologies to accelerate the adoption of modular, multi-die systems. In other developments, Wells Fargo has initiated coverage on Microchip Technology with an Equal Weight rating, setting a price target of $60.00. The firm noted Microchip’s potential for higher earnings per share recovery compared to its peers but suggested these factors are already reflected in the current share price.

Lastly, the semiconductor sector, including Microchip Technology, experienced a decline after China launched investigations targeting the US chip sector amid trade talks. Despite these challenges, Microchip continues to push forward with innovative solutions and strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.